Xiaomi seems to be bouncing back overseas since the onset of the pandemic. The Chinese smartphone maker reported a revenue of CNY 53.54 billion (Roughly $7.7 billion) in the second quarter of 2020, up by 3.1 percent since the same period in 2019, surpassing analysts' expectations of CNY 51.41 billion.
Xiaomi's revenue is also up by 7.7 percent since the previous quarter, marking the beginning of the path to recovery, at least in the overseas markets. Xiaomi's smartphone business saw a dip in revenue, dipping to 1.2 percent since Q2 2019. The company sold 28.3 million smartphones in Q2 2020, down from 32.1 million units in the same period last year.Xiaomi also saw sales of premium smartphones go up by 99.2 percent year on year in overseas markets. The average selling price of Xiaomi devices increased by 11.8 percent YoY and 7.5 percent QoQ. Smartphone sales currently account for the bulk of the company's revenue, nearly two-thirds.
JUST IN: Check out our Q2 2020 earnings report.Over the next decade, we aim to truly lead the way to the future of smart living. To make this happen, Xiaomi's core strategy will be upgraded to "Smartphone X AIoT" #NoMiWithoutYou#SmartLivingForEveryone pic.twitter.com/Vj6NPslide
— Xiaomi (@Xiaomi) August 26, 2020
However, sales in India saw a more gradual recovery as the lockdown was lifted in Q2 2020, with production constraints continuing. In April this year, smartphone shipments had dropped to zero. India is currently Xiaomi's biggest market outside China and currently holds the largest market share in the country.
Frequently Asked Questions
A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.
There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.
Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.
Even as the lockdown restrictions were eased in the months since the daily number of smartphone activations were 72 percent as compared to January 2020. In overseas markets, Xiaomi smartphone activations reached 120-percent of the pre-pandemic level recorded in January 2020.Xiaomi also found itself caught in a firestorm of anti-Chinese sentiment in India during the month of June and July. Among the several Chinese apps banned by the Indian Government, Xiaomi had a couple of apps on the list. However, the biggest issue facing the tech firm at the moment in India is production.